Home Business Bitcoin is already replacing gold, says ARK’s Cathie Wood

Bitcoin is already replacing gold, says ARK’s Cathie Wood

Cathie Wood

The question of whether Bitcoin (BTC) can replace gold has been around since the cryptocurrency’s existence. However, it is not yet possible to say with certainty whether this idea is actually correct.

Cathie Wood, the CEO of ETF publisher ARK Invest, thinks so – in fact, she’s very optimistic. According to her, there is evidence that investors are already replacing gold with Bitcoin.

“Investors are selling gold for Bitcoin”

loved wood last Sunday a presentation about her expectations for 2024. She specifies her expectations for Bitcoin based on various data.

According to a large number of investors, Bitcoin belongs to the same category. The digital currency proved this in the banking crisis in early 2023, Wood suggested at the time. The price of Bitcoin had risen sharply, while the KRE, the index of regional American banks, almost halved its value.

After the first American spot ETFs for Bitcoin were launched in early January, the price of Bitcoin has fallen somewhat, but the relationship between Bitcoin and gold remains strong. According to Wood, investors are already replacing gold with Bitcoin.

“Even compared to gold, Bitcoin has risen. There is now a migration to Bitcoin and we believe this will continue as there is a much easier and smoother way to access Bitcoin,” Wood said.

In the presentation, Wood explains that the market is in a risk-averse mode. Using a graphic, she shows that gold is holding up relatively well despite sharply increased interest rates. According to her, this is because people view gold as a “risk-averse investment.”

Is Cathie Wood positive about crypto because she is deeply involved in the crypto world herself?

ARK Invest has already invested quite a bit in the largest cryptocurrency. Like this The company has launched its own Bitcoin spot ETF together with 21Shares.

The asset manager even holds a large stake in this fund. Additionally, some of the ARK funds own shares in various crypto companies such as Coinbase and Block.

Wood likes to think long-term in the investment world. For example, she has been saying for some time that a decline in inflation will lead to a huge rise in technology stocks.

She also remained relentlessly bullish on cryptocurrencies and at the end of last year, ARK Invest’s funds sold a large amount of cryptocurrency stocks.

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